Down, Down, Down, Down, and Up Just a Tad: Pretty Bearish Week

This week, the market literally pulled a 180 and made lower lows and lower highs every day this week. In fact, today was the only day that the S&P managed to close up and it was barely up. It did however close in the middle of it's daily range which shows a little bit of indecision but I'm gonna keep my shorts on (pun intended) for now. Here's a look at the SPY daily chart:
I think at a minimum the market will test the recent lows, approx. 104 for SPY, and if that support holds again we will continue to be range bound but in the mean time we can trade this market down. So why am I bearish again? Treasury spreads (here's a recent post that explains the treasury spread indicator), which have been spot on, are pointing lower. Here's an updated chart of where we stand according to the spreads:As you can see, spreads are making new lows which means that my money will be fading strength in the market. That is why my shorts will remain on the table. Now all of this could change and I'll be watching for more divergences but for now, the path of least resistance is down.

Have a great weekend.

TLT